The ultimate guide to saving money during your real estate transaction
If you are looking to save money when buying or selling a home, it can be tempting to look at options that include discount real estate brokers or even for sale by owner programs. That can cost you, and, in many cases, even if you do come out ahead on paper when all is said and done, the stress and work involved can be substantial.
You have a job that you need to stay focused on. Don’t take on the added burden of becoming a real estate expert, too. That’s our job, we love it, live it every day, and are eager to help you sell fast and for the best possible price
Rest assured, we do this, every day, for every client we work with, in ways that focus on saving you money when it comes to your real estate transaction. Here are some ways we can help you do just that:
The biggest factor here is timing and taxes. If you or your spouse has owned and one of you has lived in the home for at least two of the last five years as a principal residence, you are exempt from capital gains taxes on up to $500,000 of gain over the original purchase price when you sell. This can amount to more than $150,000 in tax saved.
Set the Right Price
Your professional real estate representative has the resources and experience to price your home properly for sale. By balancing your needs and market conditions, you benefit by getting the best possible price within a reasonable timeframe.
Improve Your Home
Some home improvements –though not just any –can get you back twice their value (or more) when it sells. A $1,000 improvement in curb appeal can translate to a $2,000 boost in the sale price. This work starts with cleaning, improving landscaping, and painting with fresh, neutral colors. Next, be sure your home is spotless and professionally staged for showings
Eyeballs and footprints are key. If you don’t get your home in front of interested buyers using the right channels when they are looking, you lose. We help make sure as many interested buyers as possible know your home is available, and want to come see it in person. Actively marketing your home like we do at Tampa Home Group can net you significantly more on the final sale price
Document Pre-Paid Contracts
Do you have any prepaid service contracts to maintain your home? If so, you can calculate the value that those provide to the buyer, and include reimbursement for those. That might include what you’ve paid for taxes, water, pool service, pest control, gardening, etc.
Know Inheritance Law
If you are managing an estate or have received a home as a beneficiary and you’re selling a property immediately after the owner’s passing, no capital gains tax is due based on a step up in basis. If you sell immediately, you won’t pay capital gains because the “purchase price” when you receive it and the sale price when you immediately sell it are the same for tax purposes. There is no limit on this benefit like there is with the above two-year-residence exemption on the first $500,000 of gain
Deducting Interest and Tax
Mortgage interest is deductible on both your first and second homes unless your total mortgage balance is more than a million dollars or your loan was not to buy, build or improve your home. Real estate taxes can also be deducted from your gross income for tax purposes.
A buyer’s agent is looking out for you, and can save you a significant amount of money, whether you are a first-time or experienced buyer, whether you are buying new construction or in an established neighborhood. Best of all, in many cases, it won’t cost you a thing–the seller sometimes pays the buyer’s agent, and in some cases the seller’s broker will split the commission with the buyer’s agent.
The better you understand your realestate financing options, the better. Depending on your choices, you can save tens, even hundreds of thousands, over the life of your mortgage loan. That starts with cleaning up your financial world and improving your credit score to help you get the best mortgage loan rate possible.
Your local real estate professional has the background and knowledge to understand where the market is headed and current values. Like any investment, you want to buy low and sell high. If you are buying during a hot-but-fading market, you risk paying too much. We work every day to make sure our clients don’t take risks and make mistakes when it comes to making an offer and closing a purchase.
Finally –both sides and negotiation
Whether you are buying or selling, step aside and let your calm, cool, collected real estate professional handle negotiations. Things go wrong when emotions come into play, whether you are attached to the property you are selling, or you are excited at the prospect of owning a new home. No matter what decision you are making, on either side of the transaction, keeping your emotions in check always helps you. Have questions? Need more detail? Contact Tampa Home Group today and we’re happy to help.